Appraisals - Posted by

Posted by RLB on September 26, 2001 at 21:28:41:

Dear Mei122

If you are refinancing or getting a loan for a new purchase the lender most likely will have an appraisal made. If you have good credit and paying say 20% or more down, the lender may have what’s commonly called a “drive-by” appraisal. The appraiser will look at the home from the street then use public records for size and other info on the property, then do his or her market study of comps.

But most likely they will have the appraiser do a more thorough inspection of the home by actually going through the home, taking measurements and checking heating, plumbing etc.

An appraiser arrives at an “opinion” of value. If the appraiser does a “drive-by” appraisal, it typically is less reliable. That is why it is used on less collateral critical situations. As per your other question, there is no real rule-of-thumb to say that the appraised value would be higher if the appraiser does not see the inside of the home. If you did substantial interior upgrades for instance, the appraiser on a drive-by may actually under-appraise home.

Good luck


Appraisals - Posted by

Posted by on September 22, 2001 at 09:51:17:

Let me first say that this website has been an inspirational and educational point for me for the last year. You guys are doing an excellent job.

Here is my question (probably a simple one). When an appraisal is done on a property, will a person come out to look at the house or do they solely use comps? If they do not come out, then isn’t there a possibility (and a good one might I add) that they house will get appraised for more than its true value?

Thanks and keep up the good work!